COCONINO COMMUNITY COLLEGE PROFILE · 2019. 6. 26. · Coconino Community College Profile 2 Background information The College has served residents across 18,000 square miles of Coconino

COCONINO COMMUNITY COLLEGE PROFILE ---------------------------------------------------------------------------------------------- 1-6 Background Information --------------------------------------------------------------------------------------------------------------------------------------- 2

Organizational Chart ------------------------------------------------------------------------------------------------------------------------------------------- 4

Vision, Mission, and Core Values --------------------------------------------------------------------------------------------------------------------------- 5

CHALLENGES AND SOLUTIONS ------------------------------------------------------------------------------------------------------------------ 7-26

Introduction to Challenges and Solutions--------------------------------------------------------------------------------------------------------------------- 8

FY16 Strategic Planning Priorities and Accomplishments -------------------------------------------------------------------------------------------------- 9

Strategic Plan -------------------------------------------------------------------------------------------------------------------------------------------------- 10

Challenge – Long-Term Financial Stability-------------------------------------------------------------------------------------------------------------13

Solution - Financial Austerity Plan ---------------------------------------------------------------------------------------------------------------------------------17

Solution - Strategic Resource Allocation ------------------------------------------------------------------------------------------------------------------ 18

Challenge - Performance Measures ------------------------------------------------------------------------------------------------------------------------ 19 Solution - Strategic Resource Allocation ----------------------------------------------------------------------------------------------------------------- 22

Solution - FY17 Strategic Planning Prioritization------------------------------------------------------------------------------------------------------- 23

Solution - Prioritized Spending to Enact Strategic Planning Tactics --------------------------------------------------------------------------------- 24

Other Challenges and Solutions --------------------------------------------------------------------------------------------------------------------------------- 26

ANNUAL FINANCIAL PLAN ----------------------------------------------------------------------------------------------------------------------- 27-58

Budget Development Process ------------------------------------------------------------------------------------------------------------------------------- 28

Three-Year Comparative Analysis (All Funds)---------------------------------------------------------------------------------------------------------- 34

FY17 Budget Summary (All Funds) ----------------------------------------------------------------------------------------------------------------------- 35

Faculty and Staff Statistics (All Funds) ------------------------------------------------------------------------------------------------------------------- 36

Fund Balance Reserves (All Funds) ------------------------------------------------------------------------------------------------------------------------ 37

Revenues (General Fund) ------------------------------------------------------------------------------------------------------------------------------------ 38 Tuition and Fee Revenue (General Fund) ----------------------------------------------------------------------------------------------------------------- 39

State Appropriations (General Fund) ---------------------------------------------------------------------------------------------------------------------- 41

Property Tax (General Fund) ------------------------------------------------------------------------------------------------------------------------------- 42

Other Revenue and Transfers (General Fund) ---------------------------------------------------------------------------------------------------------------- 43 Cost per FTSE by Program (General Fund) ------------------------------------------------------------------------------------------------------------------ 44

Non-Capital Equipment (General Fund) ---------------------------------------------------------------------------------------------------------------------- 45

Three-Year Comparative Analysis (General Fund) ------------------------------------------------------------------------------------------------------ 46

Explanation of Changes for FY17 (General Fund) ------------------------------------------------------------------------------------------------------ 47

FY17 Graphs for Revenue and Expenses (General Fund) ------------------------------------------------------------------------------------------------- 48

Restricted Fund Descriptions ------------------------------------------------------------------------------------------------------------------------------- 49

Three-Year Comparative Analysis (Restricted Funds) -------------------------------------------------------------------------------------------------- 50

Explanation of Changes for FY17 (Restricted Funds) -------------------------------------------------------------------------------------------------- 51

Auxiliary Fund Descriptions -------------------------------------------------------------------------------------------------------------------------------- 52

Three-Year Comparative Analysis (Auxiliary Funds) -------------------------------------------------------------------------------------------------- 53

Unexpended Plant Fund Descriptions -------------------------------------------------------------------------------------------------------------------------- 54

Three-Year Comparative Analysis (Unexpended Plant Fund) ----------------------------------------------------------------------------------------- 55

Retirement of Indebtedness Fund Descriptions ---------------------------------------------------------------------------------------------------------- 56

Three-Year Comparative Analysis (Retirement of Indebtedness Fund) ------------------------------------------------------------------------------ 57

LONG-TERM FINANCIAL SUSTAINABILITY ----------------------------------------------------------------------------------------------- 59-68

Long-Term Financial Sustainability ---------------------------------------------------------------------------------------------------------------------------- 60

Multi-Year Forecast ------------------------------------------------------------------------------------------------------------------------------------------ 61

Revenue Assumptions FY17 to FY19 --------------------------------------------------------------------------------------------------------------------- 62

Expense Assumptions FY17 to FY19 -------------------------------------------------------------------------------------------------------------------------- 63

Ratio Analysis ------------------------------------------------------------------------------------------------------------------------------------------------------- 64

Risk Analysis -------------------------------------------------------------------------------------------------------------------------------------------------- 65 Long-Term Capital Outlook -------------------------------------------------------------------------------------------------------------------------------- 67

STATE DOCUMENTS -------------------------------------------------------------------------------------------------------------------------------- 69-74

State Requirements ------------------------------------------------------------------------------------------------------------------------------------------------- 70

Summary of Budget Data------------------------------------------------------------------------------------------------------------------------------------ 71 Resources------------------------------------------------------------------------------------------------------------------------------------------------------- 72

Expenditures and Other Outflows ------------------------------------------------------------------------------------------------------------------------------- 73

Levy Limit Worksheet --------------------------------------------------------------------------------------------------------------------------------------- 74

COCONINO COMMUNITY

COLLEGE PROFILE July 1, 2016 - June 30, 2017

Coconino Community College Profile

2

Background information

The College has served residents across 18,000 square miles of Coconino County since 1991 and helped

create the region’s skilled workforce, which is improving overall health, safety and the economy in the region.

History In November 1990, the citizens of Coconino County established the College under the provisions of legislation

enacted by the Arizona State Legislature in 1971. In May 1991, the College’s funding was approved through a

special election and operations began on July 1, 1991. The College boundaries are conterminous to the

boundaries of Coconino County.

When the District began in 1991, it initially expected to serve 600 students per year. Nearly 1,000 students

registered the first semester. Since then, enrollment has increased dramatically. Today the College enrolls

8,371 annually (duplicated headcount).

Geography and Population Coconino County is located in the northern portion of the state and encompasses an area of approximately

twelve million acres. Its boundaries include the cities of Page, Fredonia, Grand Canyon, Williams, Sedona, and

Flagstaff, as well as other smaller cities and towns and all the unincorporated areas of the County. The

County's 2010 population was 134,421 as reported by the U.S. Census Bureau.

With 18,661 square miles, Coconino County is the second largest county in the United States and the largest in

Arizona, but is one of the most sparsely populated. It is characterized by rugged mountains, deep canyons and

thick forests of pine, spruce, aspen and oak. Within its borders are many scenic sites – the most popular and

impressive is Grand Canyon National Park. Other attractions are Oak Creek Canyon, Sunset Crater National

Monument, prehistoric Indian ruins at Wupatki, Walnut Canyon, the Navajo National Monument, the San

Francisco Peaks - Arizona’s highest point at 12,633 feet - and Lake Powell with 1,960 miles of shoreline.

Tribal Lands comprise 38.4 percent of the County and are home to the Navajo, Hopi, Paiute, Havasupai, and

Hualapai tribes. The U.S. Forest Service and Bureau of Land Management control 33.3 percent of the land; the

State of Arizona owns 9.5 percent; the National Park Service controls 6.8 percent; and the remaining 12

percent is owned by individuals or corporations.

Local Economy The share of the County's labor force is heavily weighted towards government, trade, and service employment.

Relative to the rest of the state, the workforce employed by government is high at 25%. The reason for the

large number of government workers in Coconino County includes the presence of several major national

parks, tribal lands and the high percentage of the total area in county public lands.

County unemployment rates as of June 2016 (6.7%) is above state unemployment (5.8%) and above national

levels (4.9%), and the District must contend with continued limited funding from the state. Coconino

Community College (CCC) is committed to improving and offering additional services to meet the County

residents’ needs. These efforts are achieved through careful monitoring of costs, innovative partnerships, cost-

saving opportunities, and seeking new revenue sources.


3

Educational Programs The College is dedicated to offering quality educational programs and services at a reasonable cost for the

citizens of Coconino County. The College provides a wide range of programs, including general academic,

technical-vocational, and student development services. CCC also offers more than 50 degrees and certificates,

distance learning, and developmental courses. CCC offers dual enrollment and concurrent enrollment

programs to jump-start high schools students’ higher education goals. The CCC2NAU program and other

university transfer programs offer a seamless transition to a four-year institution.

Student Population The College serves a diverse population of students each year. Most are Coconino County residents: 19

percent are Native American, 15 percent are Hispanic, 54 percent are female, 77 percent are seeking a degree

or certificate; and 17 percent are high school students earning college credit. Four percent are people who

already have bachelors or advanced academic degrees.

Facilities The College serves the educational needs of Coconino County through three facilities: the Flagstaff Lone Tree

Campus and District Offices, the Flagstaff Fourth Street Campus and Technology Center/FMC Institute for

Nursing Education and the Page/Lake Powell Instructional Site. In addition, the College partners with others to

provide services in Tuba City and Fredonia. District-wide administrative and support services are centralized

and administered by the President and the respective Vice Presidents and Deans.

District Governing Board The College is a political subdivision of the State of Arizona, and is subject to the oversight of the District’s

Governing Board (the Board), which is comprised of five elected members, representing each of the five

precincts of the county. These members are elected for six-year terms on a staggered basis. The Board is

granted full authority from the Arizona Revised Statutes to manage the business and educational needs of the

District. The administrative staff is responsible for the daily operation of the District.

District Governing Board

Dr. Nathaniel White, Member, District 1

Ms. Patricia A. Garcia, Chair, District 2

Dr. Marie Peoples, Member, District 3

Mr. Patrick Hurley, Member, District 4

Mr. Lloyd Hammonds, Vice Chair/Secretary, District 5

Senior Administration

Dr. Colleen Smith, President

Ms. Jami Van Ess, Vice President of Business and Administrative Services

Dr. Albert Gardner, Interim Vice President of Academic Affairs


4

Organizational Chart


5

Vision Leading our communities in lifelong learning.

Mission As a learning-centered college, we enrich lives by embracing diversity and transforming the future through

quality education.

Core Values We – the District Governing Board and employees of Coconino Community College – are dedicated to

providing quality educational opportunities to our community. In doing so, we commit to the following core

values to guide our decisions and behaviors as we seek to meet the changing needs, aspirations, and goals of

our community:

People – We strive to accept the uniqueness of each individual and the contribution each person

makes. We strive to create a caring, accepting, and productive environment for our students,

employees, and community.

Learning and Growth – We are dedicated to providing lifelong learning opportunities for our

students, employees, and community to empower them to achieve their dreams. In this endeavor,

we create learning opportunities that are accessible and relevant to our students and place the

learner first.

Quality – We recognize the importance of continually improving our educational offerings and

services and the need to hold our students and ourselves to high expectations and standards. We

employ a dynamic, strategic planning process and constantly assess our activities to be responsive

and accountable to our students, employees, and community.

Ethics – We believe that to be effective we must demonstrate integrity. Therefore, we uphold the

highest ethical standards in all of our activities resulting in a responsible and fair environment for

our students, employees, and community, and a responsive and open decision-making process.

Community – We exist for our community; therefore, we must be responsive to its changing needs

and its diversity. To do so, we strive to provide services that are timely, accessible, and affordable.

We also pursue partnerships and collaborations throughout our community to be responsive to the

needs of our diverse populations.

Respect – We recognize that learning cannot occur without respect. We are committed to the

acceptance of diverse cultures, differing ideas and beliefs, and the uniqueness of each individual

since these are the foundations of respect.

Sustainability – We commit to innovative thinking to guide our decisions toward sustainable

practices in our living and working environments. In this earnest endeavor, we strive to

demonstrate adaptive leadership, eco-friendly stewardship and quality education in a mindful and

economically-feasible manner.


6

This page intentionally left blank.

Challenges and Solutions July 1, 2016 - June 30, 2017

Challenges and Solutions

8

Introduction to Challenges and Solutions

Like any organization, the College faces a variety of challenges to completing its mission and realizing its

vision. The College’s main challenge is long-term financial stability due to a low property tax rate

compounded by cuts to state aid. In addition, the College is below state average in a few retention and

completion measures, there are challenges in the form of accreditation requirements, regulatory changes, and

significant regional gap in cost of living and median wages compared to State averages.

One key component of our identified solutions is the 2016-2020 Strategic Plan. The College has also placed a

focus on developing a more robust system of measuring the performance of its student body so that it can

direct attention to the areas of greatest need. The College’s finances are a means to achieving the mission of

transforming student lives.

Along with the new strategic plan that was effective January 1st, 2016, the College has also experienced a

change to new leadership. On February 1, 2016, Dr. Colleen Smith joined the College as the new President.

This change in leadership has brought a renewed sense of excitement for many of our important initiatives.


9

FY16 Strategic Planning Priorities and Accomplishments

The administration reviewed the completion of the old strategic plan in November. The table below shows

only the major goals and tactics that were completed in FY16 during the end of the current three-year strategic

plan. In addition, the column on the right entitled “Going Forward” explains the outcomes for FY17

objectives.

* Objective numbers above are from the larger strategic plan document for 2013-2015.

Objective* Tactic Measure Going Forward

(1) ADVISING: Expand advising

services to retain students

(1) Leverage CCC2NAU success to

larger scale: Develop advising

program - every learner has an

assigned advisor - every faculty

member and professional advisor

has an advising load

Assess and make adjustments

as needed

Three additional full-time advisors and

multiple peer advisors have been continued

with General Funds for Fiscal Year 2017.

The College will track student retention

rates.

(16) CUSTOMER SERVICE:

Enrollment Management

(37) Streamline online admissions &

registration process

Create easy link showing steps

for admission, advising,

registration, payment, drop for

non payment, transcript eval

The full-time assistant credential analyst has

been funded with General Funds for Fiscal

year 2017, and the electronic transcript

services will continue. This has resulted in

significant reduction of transcript and

admission delays.

(17) CUSTOMER SERVICE:

Marketing

(42) Advertise services to students Student servicers collateral

developed

Digital marketing has been funded with

General Funds, as has the Enrollment

Management Specialist. The new strategic

plan includes creation of a strategic

enrollment management team.

(20) PEDAGOGY, CURRICULA

DEVELOPMENT AND

INSTRUCTIONAL SUPPORT:

Improve online and hybrid course

offerings

(58) Improve and enhance the

quality of online and hybrid courses

Implement course

modifications as recommended

and approved

The online courses developed last year have

been brought online. With additional part-

time funding, the College will continue to

develop and expand online course offerings,

and continued expansion is in the new

strategic plan through 2020.

GOAL 1: CCC will promote a learner-centered environment and continue to incorporate innovative strategies to enable achievement of

individual learning goals.


10

2016-2020 Strategic Plan

A new strategic plan was adopted in November, 2015 for calendar years 2016-2020 and focuses on student

success and improving performance measures. The strategic plan was developed over an eighteen-month

period beginning June 2014 through November 2015. The process was an exceptional example of CCC’s

shared governance philosophy as all areas of the college were involved in developing and vetting the plan.

Community members and other stakeholders reviewed the plan in the Fall, prior to approval by the Board.

A total of four goals were developed for the plan, based on input received from all areas of the College in the

planning process. The plan also includes a total of 21 objectives and 113 tactics. The goals and objectives are

presented below.

Goal 1: CCC will provide learners educational opportunities that are accessible and affordable, while

also being economically feasible for the College.

Objectives:

1. Increase enrollment numbers including targeted underrepresented groups

2. Expand and enhance scholarship and financial aid opportunities to increase access for students

Goal 2: CCC will promote a learner-centered environment that incorporates innovative strategies and

support structures intended to reduce student attrition and increase retention.

Objectives:

1. Align strategic enrollment management initiatives with clear objectives defined by strategic key

performance indicators

2. Increase learning and social support and build academic success skills

3. Implement "Intrusive Academic Advising Practices" and continued implementation of new Advising

Model/Strategies

4. Evaluate and enhance distance learning modalities to increase student success

5. Evaluate and enhance student technology support and services to maximize student success

6. Investigate and develop clear pathways for developmental education (English, Reading and Math),

certificates, and programs

Goal 3: CCC will empower students to achieve their individual learning goals and implement strategies

to increase certificate and degree completion rates.

Objectives:

1. Streamline and automate operations for degree completion

2. Increase student completion rates using targeted institutional scholarships

3. Investigate initial strategies of student completion and transfer rates and realign with strategic

enrollment management initiatives

4. Strengthen partnerships with NAU/ASU/U of A and other 4-year accredited institutions aligned with

the purpose and goals of CCC

5. Increase number of students completing educational goals


11

2016-2020 Strategic Plan

Goal 4: CCC will strengthen the College’s working environment by maximizing college resources,

expanding community outreach, and implementing effective personnel management and employee

development strategies.

Objectives:

1. Evaluate professional development, retention, and internal communication to enhance a positive campus

climate

2. Evaluate strategies to promote a more safe and an environmentally friendly learning and working

environment

3. Create a diverse, inclusive and supportive climate for students and employees

4. Explore options for alternative revenue sources

5. Evaluate and enhance administrative efficiency and effectiveness

6. Optimize allocation of resources for student success

7. Enhance and broaden the image of the college with internal and external stakeholders

8. Improve student experience with enrollment, registration, and payment processes


12

Best Practices (Guiding Practices)

In preparing the strategic plan, the College conducted a literature review of several recent reports and

initiatives targeting student success and the national completion agenda. The resources reviewed included the

following:

Achieving the Dream, a Lumina Foundation initiative

Complete College America, a Lumina Foundation report

Completion by Design, The Gates Foundation initiative

A Matter of Degrees, The Center for Community College Student Engagement (CCCSE)

21st Century Report Reclaiming the American Dream, American Association of Community

Colleges (AACC)

Empowering Community Colleges to Build the Nation’s Future, AACC

The College adopted the best practices included in the Empowering Community Colleges to Build the Nation’s

Future by AACC. Their resources and report are the most comprehensive. The AACC organized the report

based upon nine areas as follows:

Community College Completion Commitment

Re-Imagining Pathways for Students

Community College/K-12 Collaboration for College Readiness

Developmental Education Redesign–Resources for Community Colleges

Closing the Skills Gap

Policy and Advocacy Agenda for Reclaiming the American Dream

Redefining Institutional Roles and Functions

Accountability

Faculty Engagement and Leadership Development

Each section of the report includes many helpful examples of successful initiatives from colleges across the

United States. It was encouraging to see that Coconino was already implementing many of the best practices

identified in the report.


13

The College’s main on-going challenge is financial. In 1991, the College was established with very low

primary property tax rate used for general operational and maintenance expenses. Of the ten community

college districts in the state, CCC’s property tax rate is substantially lower than any other district. The table

below shows 2017 Primary Tax Rate for all rural Arizona Districts.

The state has an equalization formula that was established in the 1970s to help rural districts from smaller

geographic areas. The equalization formula is based upon a minimum assessed value determined by statute and

is indexed annually by the growth in the assessed values of all the rural districts. Districts with levies below

the minimum assessed value level receive equalization funding for the difference at the assigned tax rate of

$1.37. The formula does not take into consideration that the growing districts will have more students to serve.

In other words, the formula does not look at levy per Full-Time Student Enrollment (FTSE). Thus the

equalization formula provides funding to small districts based upon the growth in other districts, even though

the small districts do not have additional students to serve. The FY15 Levy and Equalization Aid per FTSE

chart shows the levy per FTSE and equalization aid per FTSE. Navajo County qualifies for substantial State

Equalization Aid even though they receive much more levy per student than Coconino. Coconino has a low

levy per FTSE and does not qualify for State Equalization Aid because of its large geographic area.

Challenge - Long-Term Financial Stability


14

The State of Arizona has compounded this financial challenge by reducing state appropriations to community colleges steadily since 1998 when it provided nearly 45% of the College’s budget. The state has made significant cuts since FY08 because of the ‘great recession’ and now only provides 9% of the College’s General Fund budget. Today, the College receives approximately the same funding per student as it did in 1993 (in real dollars) and is serving 500 more full-time students than in 1993. The Operating State Aid chart shows the decline in state aid in dollars over the past ten years. In the long-term, continued operating state aid is uncertain as the state completely defunded Maricopa and Pima Community Colleges, the two largest community colleges in the state.

Challenge - Long-Term Financial Stability (continued)


15

As discussed on the previous page, state aid cuts started in FY08 because of the ‘great recession’; the College

developed a Sustainable Financial Plan (SFP) in 2008 to ensure long-term financial sustainability while trying

to minimize the impact to students. The SFP included hundreds of initiatives organized by account type and

divided by three levels of severity: Efficiency Measures, Critical, and Crisis. By implementing the SFP, the

College improved its financial position through new revenue generation, expense reductions, and cost

avoidance measures. These initiatives resulted in savings of $3 million over three years, including the

reduction of 25 full-time equivalent (FTE) positions.

Revenue generating efforts

60% tuition increase

100% increase in government grants

24% increase of private Foundation gifts and donations

Expense savings included

100+ cost savings initiatives

20% reduction of classes

30% programs eliminated

15% reduction of staff or 25 FTE

Closed the Williams extension site

The result of the Sustainable Financial Plan is that the College is very efficient. This is demonstrated in the

FY15 Cost per FTSE Comparison chart, that shows CCC’s cost per FTSE is very low for both the general

fund and all funds compared to the other districts in the state.



16

In addition, the College has also kept cost per FTSE in line with the rate of Consumer Price Index (CPI) for the

past ten years, as shown in the chart below. In FY10 and FY11, the sharp decline per FTSE was due to the

large influx of students during the recession, since FY13, FTSE has returned to normal levels.

Even though the College has implemented many financial sustainability measures and is extremely cost

efficient, CCC still has a long-term financial stability concern due to the very low property tax rate and low

state aid. To help address the long-term financial stability concerns, the College went to the voters in

November 2013 to seek a budget override of $4.5 million per year. This measure did not pass.



17

Following the failure of the 2013 override, the College needed to implement more cuts to be financially

sustainable in the long-term. These additional cuts came from reduction in programs and services, because

numerous efficiency initiatives had already been implemented. Administration called this phase of cuts the

Financial Austerity Plan (FAP) and invited input from the employees to review the Sustainable Financial Plan

with fresh eyes. The employees submitted new recommendations for long-term financial solutions.

The majority of FAP solutions were implemented in the FY15 and FY16 budgets, with the final phase in

FY17. In FY15 there were $430,858 of revenue items implemented that became part of the FY16 baseline

budget. In FY15, savings totaled $696,517 and FY16, savings total $135,041. The FY17 budget saw an

additional savings of $23,898 from phasing-in a reduction of the Nursing Program from 40 graduates per year

down to 20 graduates per year.

The full list of Financial Austerity Plan per year for revenue and expense solutions are shown below.

Solution - Financial Austerity Plan


18

Although long-term financial stability is an issue for the College, the initiatives that have been adopted have

helped align revenues and expenses for a longer time period and pushed back the projected structural deficit

CCC was facing prior to the implementation of the FAP (see chart below). Before the adjustments, expenses

would have exceeded revenues within five years. As you can see from the chart below, expenses are currently

below revenues and slowly growing faster than revenues. It is important to note that these reductions were

made not only to address the structural deficit, but also in anticipation of losing future state funding.

Solution - Strategic Resource Allocation

Note: Long-term financial assumptions based upon continued state aid funding. Please see

the Long-Term Financial Sustainability Section of the document for more information.

Because of the low funding structure, the College has not been able to make some much needed investments

in academic programs and student services to improve services to students. The next strategic plan contains

many initiatives to improve student performance measures, however resources to fund initiatives have not yet

been determined. A recent survey by GlobaLocal Visions, LLC, shows that 71% of likely voters have a

positive impression about CCC, and only 2% have a negative impression. While this information indicates a

possible opportunity for CCC, the challenge we found in this same survey is that 35% of likely voters know

very little or nothing at all about the College. The College is pursing a community education campaign to

strengthen our position in the local community and close that knowledge gap. In addition, the District

Governing Board has decided to ask voters for a property tax override in 2016 of $3 million per year. This

override would have a delayed implementation and replace the $2 million bond levy that expires in 2018.


19

State Performance Measures - Vision 2020

In 2010, the presidents of all ten of the Arizona community college districts worked together to develop

long-term performance measures called Vision 2020. The document identified 30 key indicators to measure

progress toward three critical goals of access, retention, and completion. Many of the key indicators within

each goal area are based on the American Association of Community Colleges Voluntary Framework of

Accountability (VFA). The VFA created common measures by which community colleges can be held

accountable including student progress, outcomes, workforce, economic, and community development metrics.

The performance measures and baseline data were published in February 2011. The Arizona colleges have

since reported on the metrics for 2012 through 2014 and now have four years of trend data. Coconino recently

began to use performance measures to drive the development of the strategic plan and budget development

process. Based on the most recent 2014 information, CCC is meeting or exceeding State averages on 15 of the

30 indicators. CCC has selected various measures to focus on for improvement, and has set target goals for

annual improvement.

The measures depicted below show the target goals CCC has selected for improvement through the strategic

plan and resource allocation process.

Challenge - Performance Measures


20

Analysis of Performance Measures

In developing the 2016-2020 Strategic Plan, an analysis of the performance measures was performed by

members of a cross-functional team. The team members discussed the performance measures targeted for

improvement in order to develop strategic plan objectives that will help meet established targets.

Access

Measure 1 - FTSE: 2,092

Measure 2 - Enrollment of Underserved Populations: Yellow

Measure 3 - Alternative Delivery: Red

Measure 4 - College-going: Red

Measure 6 - Cost of Attendance: Yellow

The causes identified for lagging access measures include the College’s financial challenges, inadequate

technology, and the young age of the institution. Financial challenges have led to the highest tuition rate in the

State of Arizona and has limited our ability to design on-line courses for increased alternative delivery.

Inadequate technology hinders the College’s ability to serve distant and remote areas of the county and limits

alternative delivery options. While the Statewide trend has been a decrease in the local college-going rates,

CCC has seen increases as more of the population is served.

The District Governing Board has set a goal of a 1% increase in annual FTSE. Alternative delivery has

hovered in the 49% - 50% range. The College-going rate of high school students in Coconino County has

doubled to 18% since 2011. Both of these areas are more than 10% below the State-wide average and need

attention. Enrollment of underserved populations as a percentage of enrollment is under the State average, and

seems to be trending downward. Although the tuition rate is increasing, the cost of attendance as a percentage

of household income has remained flat. These areas also show room for improvement when compared to the

other Arizona community college rates.

Retention

Measure 5a - 1 Year Success After Last Developmental Course, Math: Yellow

Measure 5b - 1 Year Success After Last Developmental Course, English/Reading: Green

Measure 7 - Developmental Course Success: Green

Measure 8 - College Level Course Success: Green

Measure 9a - Reaching Credit Thresholds, Full-Time: Yellow

Measure 9b - Reaching Credit Thresholds, Part-Time: Green

Measure 10 - Fall-to-Spring Retention: Green

Measure 11 - Fall-to-Fall Retention: Red

The causes identified for the lagging retention measures involve lack of advising, proximity to NAU, and lack

of other student success strategies that have produced proven results at other institutions. As part of the FY16

budget, additional funding was provided for advising and student success strategies, like early alert and peer

advising, to enhance the services provided to students to encourage retention. Given the close proximity to

NAU, many students transfer before completing a decree, or are taking CCC courses as needed to fill their

schedule.

Challenge - Performance Measures (continued)


21

Challenge - Performance Measures (continued)

Fall-to-spring retention is high both Statewide, and specifically at CCC. Fall-to-fall retention is an area of

concern for CCC when looking at the Statewide average, but compared to the individual results, CCC is in line

with median Arizona fall-to-fall retention rates. Other retention measures are fairly strong for CCC in

comparison to the rest of the State.

Completion

Measure 12 - Annual Degree/Certificate Completion

Measure 13 - Transfer Rate

Measure 14 - Transfer Rate After CCC Completion: Yellow

The main challenge when looking at CCC transfer rates comes from close proximity to NAU. Some students

transfer before completing a degree with CCC. As a commuter-campus, completion will tend to be more of a

challenge for the students. Annual degree/certificate completion and transfer rate are targeted for

improvement in student totals, but are not compared to State averages.

Summary

A review of the performance measure data shows that CCC faces some unique challenges due to the nature of

the College, but also has opportunities for improvement. The largest challenge when looking at performance

measures is the timeliness of comparable information. Some measures cover a six-year period, and the report

is issued annually based on data that is at least 18 months old at the time of release. Tracking trends, and

evaluating the success of initiatives aimed at improving these measures will continue to be a challenge for all

institutions.


22

Solution - Strategic Resource Allocation

CCC has implemented a planning cycle for continuous improvement. Targeted performance measures help

influence the development of the strategic plan. The measures and strategic plan together are a large

consideration when allocating resources during budget development and when looking at long-term financial

planning. This cycle is depicted in the graph below.

Resource allocation for the FY17 budget was tied to the performance measures according to the chart below.

This will be discussed further in the Strategic Plan and Priorities section of the document.


23

Solution - FY17 Strategic Planning Prioritization

The strategic plan is created by identifying objectives to support the main goals and then identifying specific

tactics to achieve the objectives. In order to identify the highest priorities for FY17, the Budget Planning

Committee reviewed all requests and evaluated them on how they impact the performance measures and the

strategic plan.

Objective numbers above are from the larger strategic plan document and help to associate prioritized spending for each

objective. Performance Measures are explained on Page 15 of this document.


24

Solution - Prioritized Spending to Enact Strategic Planning Tactics

Strategic Plan, Goal 1: CCC will provide learners educational opportunities that are accessible and

affordable, while also being economically feasible for the College.

Objective 1, Tactic 1 – Increase communication/outreach to current and prospective students

Responsible - Dean of Student Services

Enrollment Management Specialist - $63,250 General Fund Allocation

The Enrollment Management Specialist provides support for college student outreach and recruitment

efforts through the G/O Digital electronic advertising, responds to online/email inquiries, and

participates in student recruitment and outreach efforts. This was originally started as a TAACCCT

grant funded initiative that is being added into the FY17 budget.

Objective 1, Tactic 1 – Increase communication/outreach to current and prospective students


Gwinnet-G/O Digital Electronic Advertising - $15,500 General Fund Allocation

G/O Digital provides electronic advertising and recruiting. It leverages technology to increase outreach

to prospective students. This was originally started as a TAACCCT grant funded initiative that is being

added into the FY17 budget.

Strategic Plan, Goal 2: CCC will promote a learner-centered environment that incorporates innovative

strategies and support structures intended to reduce student attrition and increase retention.

Objective 3, Tactic 38 – Reduce Staff to Student Ratios


Peer Advising - $23,656 General Fund Allocation

The peer advising program is an effective student retention service. It also provides student

employment, which is another factor in student retention. Students prefer to use peer advisors because

they are more relatable. This was originally started as a TAACCCT grant funded initiative that is being

added into the FY17 budget.

Objective 3, Tactic 39 – Strengthen Early Alert Program


Starfish Early Alert Services - $19,820 General Fund Allocation

Starfish Early Alert provides an avenue for instructors and Student Services staff to work

collaboratively on the improved retention of students. This is done by notifying students early in the

semester of academic challenges and connecting them to the appropriate resources. This was originally

started as a TAACCCT grant funded initiative that is being added into the FY17 budget.

Starfish Connect Advising Services - $22,700 General Fund Allocation

Starfish Connect enhances the student advising experience through online appointment scheduling,

data collection, a kiosk, student success planning, and student referral services. It creates efficiencies in

staffing and access to resources. Students have access to a student success network and can work with

advisors to create a student success plan. This was originally started as a TAACCCT grant funded

initiative that is being added into the FY17 budget.


25

Solution - Prioritized Spending to Enact Strategic Planning Tactics

Objective 4, Tactic 44 - Training for online course design and pedagogy

Responsible – Vice President of Academic Affairs

eLearning Lab Assistants - $15,568 General Fund Allocation

The Teaching and Learning Center (TLC) at the college provides training to faculty on instructional

technology. The Lab Assistants help keep the TLC staffed and allow for enhanced support towards

faculty training. This was originally started as a TAACCCT grant funded initiative that is being added

into the FY17 budget.

Strategic Plan, Goal 3: CCC will empower students to achieve their individual learning goals and

implement strategies to increase certificate and degree completion rates.

Objective 5, Tactic 65 - Consider the need for more Full-Time Faculty

Responsible – Vice President of Academic Affairs

Geology Full-Time Faculty - $76,688 General Fund Allocation

Lack of full-time faculty in “orphaned areas” leaves CCC without content experts and continuity.

Geology is one of these areas. “Orphaned areas” are defined as subject areas with course offerings, but

no full-time faculty. Research has shown that in the first two-years of a post-secondary education,

interaction with full-time faculty rather than part-time faculty has a stronger effect on retention than

any other factor. Geology classes average 11 sections per year with an average class size of 21 students

per section.

Anthropology Full-Time Faculty - $76,688 General Fund Allocation

As stated above, lack of full-time faculty in orphaned areas leaves CCC without content experts and

continuity. Anthropology is one of these areas. Research has shown that in the first two-years of a post-

secondary education, interaction with full-time faculty rather than part-time faculty has a stronger

effect on retention than any other factor. Anthropology classes average 20 sections per year with an

average class size of 29 students per section.

Strategic Plan, Goal 4: CCC will strengthen the College’s working environment by maximizing college

resources, expanding community outreach, and implementing effective personnel management and

employee development strategies.

Objective 2, Tactic 76 – Research and evaluate college safety and security needs

Responsible - Executive Director of Facilities

Security Enhancements - $60,972 General Fund Allocation

The mission of the College’s Security program is to “protect life and property.” Recent survey results,

along with a security assessment, show strong support for enhanced security at both the Lone Tree and

Fourth Street campuses. This funding would increase available hours for security coverage and provide

enhanced training.


26

Higher Learning Commission Required Assurance Argument and Credentials Requirements

The Assurance Argument is an interim narrative required by the Higher Learning Commission (HLC) during

the fourth year of the College’s accreditation cycle. This process started in October 2014 and was finalized

and submitted in January 2016. It consists of five committees to evaluate core components; Mission, Ethical

and Responsible Conduct, two sections of Teaching and Learning, and the final core component is Resources,

Planning, and institutional Effectiveness. Although this was a long process and time consuming for the

College, it was beneficial to review where the college has been and where it can continue to improve. HLC

provided valuable feedback we will follow for continuous improvement.

A new challenge the College is facing is the ability to attract and retain qualified part-time faculty. HLC has

tightened guidelines for qualified instructors, and the College is developing strategies to help our instructors

meet these requirements. Some instructors may choose not to pursue the educational requirements necessary

for continued teaching, and attracting qualified replacements may be a challenge.

TAACCCT Grant

CCC was chosen to receive a U.S. Department of Labor Employment and Training Administration Trade

Adjustment Assistance Community College & Career Training (TAACCCT) Grant. This grant was for $2.5

million, and covered three and a half years. It allowed the College to pilot some initiatives, and enhance the

CCC2NAU program. The grant ended March of 2016. Many of the funding initiatives added to the FY17

General Fund budget are continuation of efforts that were begun with TAACCCT Grant funding.

New Leadership

On February 1, 2016, Dr. Colleen Smith joined the College as our new President. With the new strategic plan

beginning in January and president in February, the new year has started with exciting changes and

opportunities for the College. The Administration and Staff of CCC have come together to support Dr. Smith

and looking forward to the opportunities her leadership will bring.

Summary

The College’s main challenge is and will continue to be the long-term financial stability due to low property

taxes and the uncertainty of state aid. The College also faces weaknesses in performance measures that are

now being incorporated into the strategic plan and budgeting process. The College financial austerity measures

have helped re-align expenditures and revenues, but without a long-term solution the structural deficit will

continue. The College is moving forward to reallocate resources based upon performance measures, cost of

programs, and strategic planning and is actively seeking opportunities to continue to improve CCC’s services

to the community.

Other Challenges and Solutions

27

Annual Financial Plan

July 1, 2016 - June 30, 2017

28


Budget Development Process

Budget Organization An explanation of funds and programs codes is described below.

Funds

There are five funds that make up the College’s all Funds budget.

General Fund - Used to account for all general operations of the College and is the largest

fund.

Auxiliary Fund - Used to account for self-supporting activities that perform a service to students.

Restricted Fund - Used to account for resources that are r estr icted by outside donors or

agencies such as grants, contracts, and financial aid.

Unexpended Plant Fund - Used to account for equipment, or the construction or

improvement of buildings.

Retirement of Indebtedness - Used to account for the resources for payment of pr incipal and

interest on debt.

Program Codes

Instruction - Activities directly related to instruction including faculty salar ies, benefits, and

supplies.

Public Service - Non-instructional services beneficial to individuals or groups external to the

institution.

Academic Support - Activities that support instruction including libraries, academic computing,

curriculum development, and deans’ offices.

Student Services - Non-instructional, student-related activities such as recruitment, admissions,

advising, career counseling, financial aid, and student clubs and organizations.

Institutional Support - General administrative services such as executive management, legal and

fiscal operations, human resources, and public relations.

Scholarships - Institutional spending on scholarships, including federal financial aid from

restricted funds.

Plant Operations and Maintenance - Service and maintenance of the physical plant, buildings

and grounds, utilities, and property insurance.

Basis of Budgeting The College primarily uses an incremental budget process. An incremental budget means that the prior year

base budgets are the starting point and incremental changes are made to the base budget which are not covered

by reallocation of funds. Budget requests are prioritized based upon strategic planning initiatives,

recommendations from the Budget Planning Committee, and the administrative leadership. The College also

uses a zero-base budget process for travel and other account categories on a rotational basis. Zero-base means

that the budget begins with “zero” and all expenditures must be justified.

Controls The College maintains budgetary controls by line item of the approved budget. An encumbrance accounting

system is maintained by the College to accomplish budgetary control. Open encumbrances are not reported

as reservations of fund balance at year-end, but are liquidated (lapse at year-end). Encumbrances are

re-established at the beginning of the next fiscal year as an obligation against the current year’s adopted

budget.

29


Budget Development Process (continued)

Budget Planning Committee (BPC)

The purpose of the committee is to provide guidance in developing the annual budget in a manner consistent

with approved policies and priorities; to establish the broad parameters within which the budget will be

developed; to ensure that goals and objectives from the strategic plan are translated into clearly-defined plans

and priorities to which resources will be allocated.

Members of the committee include:

Vice President of Business and Administrative Services

Vice President of Academic Affairs

Dean of Career and Technical Education

Dean of Arts and Sciences

Dean of Student Services

Dean of Finance

Chief Technology Officer

Director of Page Instructional Site

Director of Human Resources

Registrar and Director of Enrollment Services

Controller

President’s Office Representative

Faculty Representative to College Council or alternate

Staff Representative to College Council or alternate

Part-time Faculty Representative to College Council or alternate

Student Representative

Budget Process A summary of the budget development process is listed below and is explained in more detail on following

pages:

October - Develop budget assumptions and present to BPC

November - Distribute tuition and fee schedules to budget managers

December - Tuition and fee recommendations due to Controller

December - BPC meeting to discuss tuition and fee recommendations

January - Distribute base budget reallocations and travel justification forms to budget managers;

forms must be approved by Vice Presidents and President

January - DGB work session to review tuition and fee recommendations

February - Present tuition recommendation to student forum

February - Budget manager and supervisor meetings to review budget and travel justification forms

February - Compensation committee recommendations presented to Vice Presidents and President

February - BPC review preliminary budgets

February - DGB compensation work session and approval of tuition and fees

March - Budget managers confirm preliminary budget

March - DGB provides direction on salary and benefits

April - BPC and DGB review preliminary budget

May - DGB final budget adoption

May - College-wide budget presentation

30


Assumptions Beginning assumptions are established as a starting point for developing the budget and are developed in

October of each year. For FY17, the beginning assumptions were as follows:

Revenues

Enrollment - Current enrollment is flat and job market is improving, projecting flat enrollment

Tuition - $2.00 increase per credit hour to standard tuition rate as directed by the Board, other rates

are a multiplier of the standard rate

State Aid - Reduction per state formula due to decline in enrollment in prior years

Property taxes - 2% maximum allowed increase in levy plus 1% new construction added to the tax

rolls based upon trend

Other Revenues - 2% increase to most line items

Expenses

Utilities - 3.5% increase per Arizona Corporation Commission discussion

All other expense categories including salaries and benefits - 3% increase

Budget Manager Meetings

In February of each year, the Vice President of Business and Administrative Services, Dean of Finance, and

the Controller schedule individual meetings with each budget manager to review his/her base budgets. During

the meetings, three years of budget-to-actual trend data is reviewed, as well as, any budget requests that the

budget manager may have. Budget requests are covered first through any reallocation of funds by the budget

manager or division funds. If the budget request is not covered by reallocated funds, then the net difference is

listed on an budget request spreadsheet. Base budget adjustments are entered by the Controller and sent back

to the budget manager for his/her review and approval.

REVENUES

Enrollment

Enrollment projections are based upon trend analysis and County projections for population growth.

Tuition and Fees

Tuition and fees, including specialty tuition rates and non-class fees, are reviewed in December. Academic

Deans review specialty tuition rates for higher-cost programs, market data and instructional expenses to

determine if increases to specialty tuition rates will be recommended. Other fees, such as parking fees, are

also reviewed by respective areas and compared to market to determine if changes will be recommended.

Trend analysis of enrollment within the different rates of tuition is used to project tuition revenue.

Tuition and fee recommendations are taken to the Board in January in a work session to review

recommendations and receive direction. The Board approves tuition and fees rates in February for the next

academic year.

State Appropriation Aid

State aid is calculated per formula which is “base plus growth.” The base is the prior year’s state aid. The

growth or loss is calculated by the increase or decrease in full-time student equivalent (FTSE) between the two


31



most recent fiscal years in each category of non-dual enrollment and dual enrollment. The growth or loss in

FTSE is multiplied by the given rate per category. One FTSE equals an average of 15 credit hours in each of

the fall and spring semesters, for a total of 30 credits hours for one year. The future of state appropriation for

the College is uncertain, because of cuts to urban districts.

State STEM Appropriation The state provided STEM appropriations to the College since FY14 and it is not known if it will continue for

future years. The STEM aid is restricted for science, technology, engineering, mathematics, and workforce

programs.

Property Taxes

By February 10th of each year, the County Assessor’s Office provides assessed valuations needed to calculate

the primary and secondary property tax levies. The primary levy cannot exceed the prior year levy by more

than two percent plus new construction added to the tax rolls. The Board typically adopts the maximum

allowed tax rate. Secondary taxes are based upon voter-approved debt retirement schedule.

Grants and Contracts

Grants and contracts mostly include revenue from federal and state grants that have been awarded to the

College. During the budget manager meetings, special meetings are held with individual grant program

managers and the Grants Accountant to develop the upcoming budget based on the anticipated funding level

for the program.

Sales and Services

Sales and services revenue is budgeted in the Auxiliary Services Fund and is estimated using minimum

guarantees and estimates based off trend information.

Investment Income

Investment income is earned on balances invested with the County Treasurer and State Local Government

Investment Pool. This revenue is budgeted using projected fund balance, and estimated rate of return.

EXPENSES

Salary and Benefits Salary and benefits are the largest expenditure of the College and accounts for approximately 61% of the

General Fund budget. The Board has directed staff to conduct a salary survey every other year. In alternate

years, employees and supervisors can request position reviews or reclassifications. The Board reviews and

provides direction on salaries and benefits at the February and March meeting, respectively. The Board’s

allocation includes any increases for CPI, merit, market, and reclassifications for all faculty and staff.

The Arizona State Retirement System (ASRS) posts the required employee and employer contribution rates

each year.

Health benefits are determined through the Northern Arizona Public Employees Benefit Trust (NAPEBT)

which is a trust formed by local public employers to provide cost-effective benefits packages to their

employees. The benefits covered include self-funded medical, vision, pharmacy, and traditional life and dental

insurance.

32



Travel Requests

All travel expenses are zero-based annually. All travel must be requested and justified each year. Travel

expenses includes in-district, in-state, and professional development. Professional development travel is

allocated on a FTE basis to benefit eligible positions.

Since Professional Development fund allocations do not cover all the costs of attending conferences,

supervisors and budget managers typically pool the funds and alternate which employees are able to receive

funds from year to year.

Preventative Maintenance (Life Cycle Replacement)

The College allocates funds for preventative maintenance projects annually, based upon a cost per square

foot indexed by the CPI. Allocated funds not used in any one year are rolled over and reserved for future

preventative maintenance projects. This process allows the College to set funds aside annually for larger

projects.

The College has preventative maintenance schedules for 20 years that include major maintenance and

replacement of items such as HVAC units, roofs, parking lots, and carpeting. The Executive Director of

Facilities assesses the condition of the facilities and adjusts the schedules annually, or as needed, to ensure the

facilities are maintained and the life and safety of the students and staff are protected. Any capital items that

improve or extend the life of the facilities and are over $5,000 are capitalized and budgeted in the plant fund.

Academic Support Technology

In FY16, technology fee and on-line course fees were combined for a total of $7 per credit hour for technology

tuition. In FY17, technology tuition is still $7 per credit hour but is included within tuition rate. Any

necessary purchases needed are addressed during the budget process in February. The Instructional

Technology Services department uses the funds to pay for equipment, software and maintenance agreements

for the instructional, academic support, and student services program codes.

Institutional Technology and Other Equipment

The College budgets $150,000 annually for institutional technology and other equipment. In addition to

equipment funds, the College has STEM appropriation of $418,000. To receive funds, a requestor completes a

form and, similar to budget requests, the equipment requests are prioritized based upon strategic planning

initiatives, recommendations from the Budget Planning Committee, and the executive leadership. Any

equipment items over $5,000 are capitalized and budgeted in the Plant Fund.

33



Presidents Discretionary Fund An allowance of $100,000 is budgeted for unforeseen expenditures and is expended at the President’s

discretion.

Innovation Fund The purpose of the Innovation Fund program is to provide financial incentive to faculty, staff, and students in

developing and implementing innovative projects that will generate revenue, create savings or technological

solutions, improve services to students, and/or advance strategic planning initiatives of access, retention, and

completion. A $100,000 fund has been set aside in the President’s budget for innovation projects.

Contingency Fund The College typically carries a $1 million contingency fund for emergencies. Since the implementation of the

Financial Austerity Plan (FAP), the contingency has increased to $2.6 million due to the reduction in cost from

cuts from reduction in programs and services previously discussed in the Challenges and Solution section. The

contingency can be used to fund College operations if the state cuts funding to the College. If the contingency

is not used it is returned to the fund balance.

34


All Funds

*Excludes net investment in Plant Fund

Three-Year Comparative Analysis - For Years Ended June 30th

35


All Funds

FY17 Budget Summary - For Year Ended June 30th

36


All Funds - Faculty and Staff Statistics

Salaries and benefits represent the largest expense for the College. The schedule below provides an all funds

three-year comparison of salaries and benefits by program and employee classification type. In addition,

the number of full-time equivalent positions for both restricted and unrestricted funds is provided. For FY17,

total compensation has increased due to two additional faculty and some additional support staff but also

decrease in TAACCCT grant funded staff. FY17 salary budget change is only a one percent increase from

FY16.

Three-Year Comparative Analysis

Faculty and Staff Statistics

37


All Funds - Fund Balance Reserve

The purpose of the College’s fund balance procedure is to establish a targeted amount for General Fund and

fund balance reserves. It is important to maintain adequate levels of unreserved fund balance to mitigate

financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, cash flow

management, emergency contingency, and Plant Fund designations. The fund balance also provides cash flow

liquidity for general operations.

At the close of each fiscal year, a transfer of funds shall be made to maintain a General Fund ending balance

equal to four (4) months of revenues (estimated at 33% of annual revenues). Any excess revenues over

expenditures in the General Fund for a fiscal year will be transferred to the Plant Fund for future capital

expenditures.


38


The General Fund has three major revenue sources: student tuition and fees, state appropriations, and property

taxes. The chart below depicts the changes in these revenue sources over a ten-year period showing the state

appropriations declining, while tuition and fees has increased.

General Fund - Revenues

Tuition Fee includes student ID, transcripts, student activities, and computer lab

As of FY17, Tuition rate also includes technology fee

The chart below shows how CCC was forced to implement large tuition increases due to the decline in state

appropriations from FY08 though FY11. CCC now has the highest tuition rate in the state. Since FY12, the

College has been able to maintain lower tuition increases.

39


Tuition and Fee revenue for FY17 is based upon enrollments of 2,073 FTSE. Enrollment flattened out after the

recession and returned to normal levels.

General Fund - Tuition and Fee Revenue

Coconino Community College has one of the highest tuition rates in the state, as previously discussed, the is

mainly due to the also having the lowest property tax levy in the state.

40


In FY17, the District Governing Board approved a tuition increase of $3.00: $2.50 for standard tuition and a $0.50

increase to scholarships. In FY17, technology fee was approved by the DGB to be included in the tuition rate,

which helps cover the increasing cost of technology. The differential tuition rate replaces class fees and charges

higher tuition rates to higher-cost programs. The standard tuition for each of the residency types are: Residents -

$102, Western Undergraduate Exchange (WUE) Program - $153, and Out-of-State - $357. The WUE program and

Out-of-State tuitions are based on a multiplier of the standard rate. The 2016-2017 Tuition Schedule below shows

the level for each differential tuition rate.

General Fund - Tuition and Fee Revenue

*Levels 5-9: Students in the WUE program are charged non-resident tuition for any course specified in levels

5 through 9, plus applicable special course tuition rates and fees.

Tuition and Fee Revenue Projections


Tuition and fees are projected based upon trend analysis for the different types of tuition (Out-of-State,

Out-of-County, WUE, Dual Enrollment, and CAVIAT).

41


Declines in state aid began in 1998 due to the struggling economy and decreased tourist activity. State

funding for FY17 has declined slightly from last year based on the statutory formula and whether state funding

will continue is uncertain, at this time. State appropriations are received based on Full-Time Student Equivalent

(FTSE) enrollment and formula funding. This formula funding provides $605 per FTSE (30 credit hours per year)

while dual enrollment is only calculated at fifty percent or $303 per FTSE. State appropriations are received on a

two-year lag based on enrollment growth or decline. The State appropriations funding formula has not been

adjusted to keep pace with inflation.

General Fund - State Appropriations

State Appropriations Revenue Projections


42


The tax levy is calculated in accordance with Arizona Revised Statutes (A.R.S.) §42-17051. Assessed property

values fall into two tax levy categories, property on the tax rolls in the current year and newly completed

construction being added to the rolls.

The Arizona Constitution limits the increase in the District’s tax levy on current assessed property to 2% per year.

Because of the low property tax rate, CCC Board has approved the maximum levy each year. New construction

growth rate averages approximately 1% per year.

Secondary taxes are collected to pay for the General Obligation Bonds as described in the Retirement of

Indebtedness section of this document.

General Fund - Property Taxes

Tax Levy Limit A.R.S. §42-17051


43


General Fund - Other Revenue and Transfers


Other revenue consists of less than three percent of total revenue. They are funds such as grants, contracts,

investment income, bookstore income, parking tickets revenue, and other income listed below.

44


General Fund - Cost per FTSE by Program

The chart below depicts the cost per full-time student equivalent in the General Fund based upon programs

codes. Over the past three years, the total cost per FTSE in the General Fund has declined due to the Financial

Austerity Plan.

Program Codes Descriptions

Instruction (100000) - Activities directly related to instruction including faculty salar ies,

benefits, and supplies.

Public Service (200000) - Non-instructional services beneficial to individuals or groups external to

the institution.

Academic Support (300000) - Activities that support instruction including libraries, academic

computing, curriculum development, and deans’ offices.

Student Services (400000) - Non-instructional, student-related activities such as recruitment,

admissions, advising, career counseling, financial aid, and student clubs and organizations.

Institutional Support (500000) - General administrative services such as executive management,

legal and fiscal operations, human resources, and public relations.

Plant Operations and Maintenance (600000) - Service and maintenance of the physical plant,

buildings and grounds, utilities, and property insurance.

Scholarships (700000) - Institutional spending on scholarships, including federal financial aid

from restricted funds.


The chart below shows relationship between revenues and program expenses, in regards to FTSE. The full

cost to educate one full-time student per year is $7,973, but students pay only 46% of that amount or $3,694

per year. The College is able to offer this more affordable tuition because the community pays 44% of the cost

or $3,484 and the State contributes 10% or $794 per full time student. Taxpayer investment in Coconino

Community College is good for the local economy and local business by creating affordable educational

opportunities for jobs that stay in Coconino County. The college is open access and provides these educational

opportunities for students who might not otherwise be able afford the university.

45


FY17 Preventative Maintenance (Life Cycle Replacement)


replacement of items which normally impacts the Plant Fund. The chart below shows the items that impact

the General Fund for a total of $131,375. This covers repairs and replacements such as, furniture, lighting,

landscape, etc. Purchases under $5,000 are not capitalized and budgeted to supplies and materials in the

General Fund.

Institutional Technology and Other Equipment

The College also budgets $150,000 for institutional equipment replacement for FY17. To receive funds, a

form must be completed and then the equipment is prioritized based upon strategic planning initiatives,

recommendations from the Budget Planning Committee and executive leadership. The College also budgets

$418,000 for equipment that is used for STEM purchases only.

General Fund - Non-Capital Equipment

46


General Fund


47


General Fund


48


General Fund - FY17 Revenues

General Fund - FY17 Expenditures by Program

49


Restricted Funds are funds regulated by the sponsoring agency. Some of the programs are listed below.

STEM Appropriation - State ($418,000)

STEM provide the College with funds for partnerships, faculty, technology equipment, student services,

facilities, and property. In FY16 statutory language classified STEM funding as restricted funds.

Workforce Development (Prop 301) - State ($443,716)

Workforce Development Proposition 301 is a voter-approved initiative that was passed in 2000. The State of

Arizona imposes a 0.6% sales tax for a 20-year period. The use of these funds is restricted to workforce

development programs and is used for nursing, information technology and construction technology

management.

Adult Education (ADE) - Federal ($240,700) and State ($127,659)

The State of Arizona provides Adult Education funding to CCC to serve County residents 16 years and older

or who are not legally required to be in school and who do not have a high school diploma. The purpose of

the services are to assist in job readiness by offering instruction in basic workplace development skills,

provide General Education preparation classes, English language instruction, and citizenship preparation

classes.

Financial Aid - Federal ($5,247,471) and State ($9,893)

Student financial aid consists of student grants (SEOG, LEAP, PELL), Federal Work Study (FWS),

administrative overhead, scholarships funded by federal, state, and local governments, as well as other public

and private sources. The financial aid department has developed procedures to verify eligibility and

coordinate aid awards to ensure that any one recipient does not receive aid in excess of prescribed limits

Carl Perkins Grant - Federal ($257,391)

The Carl Perkins Grant provides funding to improve vocational educational programs and the

assessment, retention, and completion of special population students in these programs. The grant provides

students with career exploration and planning services, academic advising, referrals, and support to eligible

students. This program is particularly advantageous for individuals who are academically and/or

economically disadvantaged, are limited in English proficiency, have a disability, or are pursuing a

non-traditional degree for their gender.

Trade Adjustment Assistance Community College & Career Training (TAACCCT) Grant - ends

September 2016 - Federal ($50,299)

The U.S. Department of Labor Employment and Training Administration’s TAACCCT grant helps expand

and enhance the CCC2NAU program, an innovative 2+2 transition partnership program between CCC and

NAU.

TRiO - Federal ($224,084)

The TRiO program serves low-income, first-generation college students and/or students with documented

disabilities. Services that are provided include tutoring and counseling for academic issues, career planning,

financial aid, and personal issues.

Restricted Funds

50


Restricted Funds


51


Restricted Funds


52


The Auxiliary Enterprises Fund accounts for transactions of substantially self-supporting activities that

provide services for the community, students, faculty, and staff. Auxiliary Fund revenues and expenditures

are adjusted each year to ensure that expenditures equal revenues and the fund balance available.

Vending Services Vending Services provide revenue sources at all campuses. The student vending account expenditures relate

to student programs and clubs. Below is a list of clubs that are funded through Auxiliary funds:

Anime Club

Associated Student Body

Clay Club

Games Club

Kaleidoscope Alliance

Latter Day Saints Student Association

Native American Student Association (Changed From Indigenous Student Association)

Philosophy Club

Phi Theta Kappa

Science Club

Sirius Stars Gazers

Vintage Christian Fellowship

Veterans Student Association

Volunteer Club

The employee vending account is used to promote the values of the College, including employee recognition

activities, employee events, and promoting professional development and morale. At the end of the year, any

remaining balance will remain in each fund to be used or carried forward into subsequent fiscal years.

Equipment Rental

The Math department at all the Flagstaff and Page locations rents calculators to students. A nominal fee pays

for the replacement of the calculators and batteries. This program promotes the use of technology in the

classroom and provides an alternative for students who cannot afford to buy a calculator.

The English department at the Flagstaff campuses rents electronic dictionaries to students for use in English

courses. A nominal fee pays for the replacement of these devices. Much like the calculator rental program,

this program promotes technology in the classroom and allows students the flexibility of learning within their

own homes.

Auxiliary Funds

53


Auxiliary Funds


54


The Unexpended Plant Fund consists of expenditures during the current year for capital assets. The budgeted

expenses include facility improvements, improvements other than buildings, and equipment necessary for

ongoing operations. Any capital items that improve or extend the life of the facilities and are over $5,000 are

capitalized and budgeted in the Plant Fund. The Plant Fund total expense is $10,250 in preventative

maintenance and is explained below.

FY17 Preventative Maintenance (Life Cycle Replacement)


replacement of items such as HVAC units, roofs, and carpeting. For FY17, prioritized projects included

$10,250 for fire panel in Page. Operating impacts to the General Fund are estimated to be increased savings in

utility costs due to greater efficiencies of the systems. Other planned maintenance cost of $131,375 was

budgeted in the General Fund.

The chart below depicts the expenditures that are impacting the Plant Fund.

Unexpended Plant Fund

55


Unexpended Plant Fund


56


Retirement of Indebtedness Fund

Currently, the College has one long-term debt agreement in the form of General Obligation Refunding Bonds,

Series 2009, that is accounted for in the Retirement of Indebtedness Fund.

General Obligation Bonds (GOBs) The GOBs were issued in January 1999 and are secured by the full faith and credit of the District through its

power to tax. In order for bonds to be issued, voter authorization must be obtained. Debt service (payment of

principal and interest) is to be paid from the proceeds of ad valorem taxes (i.e. secondary property taxes based

upon the value of the property). Voters of Coconino County approved $25 million in general obligation bond

authority on November 4, 1997, to support the District’s capital initiatives. The College issued General

Obligation Refunding Bonds, Series 2009, at an estimated tax savings to taxpayers of nearly $100,000 per year

for 10 years (expiring in 2019).

General Obligation Refunding Bonds

$17,135,000, Series 2009

Debt Repayment Schedule - Flat Debt Tax Rate Structure

The principal $1,885,000 is shown in the Expenditure by Object section under the Retirement of Indebtedness in the Three-Year

Comparative Analysis chart. This is the principal amount the college is responsible to expense in FY17. The $224,120, under

Miscellaneous in the Expenditures of Object section is the interest expected to expense this year. The Debt repayment used to be

calculated on Secondary Assessed Valuation but is now on the Primary, which you can locate on the 2016 Levy Limit worksheet

line C.4.

57


Retirement of Indebtedness Fund


58



59

Long-term Financial Sustainability July 1, 2016 - June 30, 2017

Long-term Financial Sustainability

60

The College has a long-term structural imbalance because of very low property tax rates as well as very low

state aid. The College has developed long-term, high-level assumptions through FY27 as follows:

Revenues - Average growth of 2.7%:

Enrollment - growth of 1% per year based upon long-term county population growth trend

Tuition rates - $2 increase per year to standard rate based upon Board direction

State aid - flat funding, no growth and no cuts, which is uncer tain

Property tax - 2% levy increase plus 1% new construction growth based upon trend analysis

Expenditures - Average growth of 3.0%:

Personnel cost - average increases of 3.2% per year including increased par t-time faculty

associated with 1% enrolment growth and the planned increase of three advisors to improve student

success

All other expense categories - average increases of 2.1% per year including increased supplies

associated with 1% enrollment growth per year

The chart below shows the General Fund revenues and expenses for the next twelve years. The

implementation of the Financial Austerity Plan helped to align revenues and expenses and pushed back the

structural deficit as long as state funding is not reduced. The strategic plan will continue to address the

long-term financial sustainability of the College.

Long-Term Financial Sustainability


61

Multi-Year Forecast - General Fund


62


Revenue Assumptions for FY17 to FY19


63


Expense Assumptions for FY17 to FY19


64

The College is required to submit financial ratios annually to the Higher Learning Commission (HLC), the

College’s accrediting body, to measure the College’s financial health. The financial ratios are defined below:

Primary Reserve Ratio: A measure of how long the institution could operate using

expendable reserves

Net Operating Revenue Ratio: A measure if operating activities provide a surplus or deficit

Viability: The availability of expendable net assets to pay off debt at any point in time

Return on Net Assets: Determines the total return on investment of net assets for the year

Composite: Weighted average score to determine overall financial health

The College’s financial ratios have been improving since 2005 through strong financial management,

including proactively implementing the financial sustainability plan during the recession. The composite score,

which must be above 1.1 to avoid a potential HLC review, increased from last year to 4.6, which means that

the College is relatively healthy financially based on current business model.

Ratio Analysis

Strength Factors:

1. Institution is under financial stress

3. Institution is relatively financially healthy

10. Institution is financially strong to support new initiatives


65

Risk Analysis

High Cost of Technology

Students expect a high level of technology in classrooms and labs as well as easy to use applications for

navigating college processes. The cost of hardware and software is expensive, as is the annual maintenance

costs for the technology. In addition, expensive specialized consultants are needed, to keep current with

changes and to implement new technology and to maintain low cyber risks. Finally, there is a high cost

associated with keeping technical staff constantly trained and current with new technologies.

To mitigate the risk of high cost technology, the College has prioritized funding to maintain current

technology. One entire strategic planning goal focuses solely on technology.

Too Broad of Scope

Following cuts in state aid, the College has continued to try to be all things to all people and has too many

strategic planning initiatives. In FY16, the College utilized a prioritization process during the budget

development process to focus efforts on doing fewer things in a better way. The prioritization process assisted

in focusing on the needs that were the highest priority. Compounding issues, such as, the loss of 41 FTE since

2009, increased federal and state regulations, and unfunded mandates causes financial difficulty. For example,

the Fair Labor Standards Act has recently mandated a new salary threshold for exempt employees, which will

have an impact on the college. In addition, the new credentialing HLC requirements for faculty will cause a

financial impact that is unknown at this time. Finally, with new grant revenue comes heavy compliance

requirements. Maintaining compliance can be labor intensive with new and existing grants.

Insurance and Benefit Risks

The College is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets,

errors and omissions, injuries to employees, and natural disasters. The College carries commercial insurance

for all such risks of loss, including workers’ compensation, employee health, and accident insurance. Settled

claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three

fiscal years.

The College provides life, accidental death and dismemberment, disability, medical, and dental insurance

benefits to its employees and their dependents through a pooled trust, the Northern Arizona Public Employees

Benefit Trust (NAPEBT), currently composed of the City of Flagstaff, Coconino County, Coconino County

Accommodation School District, Flagstaff Housing Authority, Flagstaff Unified School District, Northern

Arizona Intergovernmental Public Transportation Authority (NAIPTA), and the College. NAPEBT is

self-funded through an agreement with the participating members and NAPEBT administers the plan. The

members’ employee and employer contributions are paid to fund benefits and administrative expenses. If the

College withdraws from NAPEBT, it is responsible for its proportionate share of any claims run-out costs,

including claims reported but not settled, claims incurred but not reported, and administrative costs. If

NAPEBT were to terminate, the College would be responsible for its proportional share of any trust deficit.

Affordable Care Act

The risk to employers, particularly those with a lot of part-time faculty and employees, under the Patient

Protection and Affordable Care Act mandate may be large. All part-time employees must be measured and

tracked on a weekly basis to ensure benefits are offered when an employee qualifies. Additionally, there are

changes that must be built into plan offerings, the risk a plan may not be considered affordable, and plans

offered must be at the silver level but face penalties for being too generous (Cadillac plans).


66

Risk Analysis (continued)

Postemployment Health Care Benefits

The District follows Governmental Accounting Standards Board Statement No. 45, Accounting and Financial

Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB Statement No. 45), for

certain postemployment health care benefits provided by the Northern Arizona Public Employee Benefit Trust

(NAPEBT). Under the requirements of GASB Statement No. 45, the actuarially determined liability of

$661,332 as of July 1, 2014, is being amortized over 30 years at a level dollar amount. The College faces

unforeseen expenditures due to rising health care costs and overall utilization.

Arizona State Retirement System

Plan description - The District contributes to a cost-sharing, multiple-employer defined benefit pension plan; a

cost-sharing, multiple-employer defined benefit health insurance premium benefit plan; and a cost-sharing,

multiple-employer defined benefit long-term disability plan, all of which the Arizona State Retirement System

administers. The Arizona State Retirement System (through its Retirement Fund) provides retirement

(i.e., pension), death, and survivor benefits; the Health Benefit Supplement Fund provides health insurance

premium benefits (i.e., monthly subsidy); and the Long-Term Disability Fund provides long-term disability

benefits. Since the State statute establishes benefits and Arizona State Retirement System Board governs the

system according to the provisions of A.R.S. Title 38, Chapter 5, Article 2, the college has no control of

expenditures each year.

GASB 68

The college had to restate unrestricted net position as of 7/1/14 as a result of the GASB 68 change for pension

liability recognition. This could impact accreditation ratios, bond rating, contribution rates, and future capital

raising potential.


67

Long-Term Capital Outlook

Facilities Preventative Maintenance/Life Cycle Replacement

The facilities five-year capital replacement schedule is shown below. This information is taken from the longer

twenty-year facilities planned maintenance schedule.

The College allocates funds for preventative maintenance projects and life cycle replacement annually, based

upon a cost per square foot indexed by the CPI. The College has preventative maintenance schedules for

twenty years that include major maintenance and replacement of items such as HVAC units, roofs, parking

lots, and carpeting. The Executive Director of Facilities assesses the condition of the facilities and adjusts the

schedules annually or, as needed, to ensure the facilities are maintained and the life and safety of the students

and staff are protected. Allocated funds not used in any one year are rolled over and reserved for future

planned maintenance projects. This process allows the College to set funds aside annually for larger projects.

The College has been able to maintain this system of setting aside funds annually for preventative maintenance

projects even during the state budget cuts and plans to continue to use this method in the future.


68


State Documents July 1, 2016 - June 30, 2017

State Documents

70

The College must follow a number of state laws in the development of the budget, as follows:

Budget The College is required to prepare an annual budget on forms designated by the Auditor General’s Office,

hold a Special Budget Hearing, and adopt the budget by no later than June 20th. [ARS § 15-1461]

Expenditure Limitations Each year, an expenditure limitation is set for political subdivisions of the State of Arizona in accordance with

ARS § 41-563. The expenditure limitation is based upon FY 1979/80 and adjusted for changes in the

population and cost of living between 1978 and 2012. The purpose of the expenditure limitation is to limit

budget growth that is supported by property taxes and/or state aid.

Property Tax Levy limitations In 1980, the citizens amended the Arizona State Constitution and capped primary property tax increases from

existing property to 2% per year. The purpose was to limit tax increases to small amounts.

Truth-in-Taxation In a 1996 legislative session, a Truth-in-Taxation statute was passed requiring political subdivisions to publish

notice of and to hold public hearings on proposed tax increases on existing property.

Debt Any debt increase by local government that is paid exclusively through the secondary property tax must be

approved by voters.

State Requirements

State Documents

71

State Documents

72

State Documents

73

State Documents

74

Note: 2016 Levy Limit worksheet for Fiscal Year 2017

2016 Levy Limit Worksheet